Remote Work Tax Relief Ireland 2026
The 30% remote working relief: how it works
Revenue Section 114A allows employees to claim a deduction for 30% of the portion of their broadband, heating and electricity costs that relate to days worked from home. The deduction reduces taxable income, so the actual saving depends on your marginal income tax rate.
Steps to calculate your deduction:
- Add up your total annual bills for broadband, heat and electricity.
- Multiply by home days / total working days to get the home portion.
- Take 30% of that figure as the deductible amount.
- Multiply by your marginal rate to find the cash saving.
Worked example: 3 days/week home worker
Assumptions: 3 home days per week, 47 working weeks per year (141 home days out of 235 total working days).
| Item | Annual cost |
|---|---|
| Broadband | €600 |
| Electricity | €900 |
| Heating | €700 |
| Total bills | €2,200 |
| Home fraction (141/235) | 60% |
| Qualifying costs | €1,320 |
| 30% deduction | €396 |
| Tax saving at 47% rate | €187 |
The EUR 3.20/day employer e-worker allowance
Employers can pay a tax-free e-worker allowance of up to €3.20 per home working day. This is in addition to the employee relief and is exempt from income tax, USC and PRSI. For a 3-day-per-week worker over 47 weeks, the maximum employer allowance is €451 per year.
The employer allowance and the employee relief are separate. If your employer pays the €3.20/day allowance, you can still claim the 30% utility relief on your own bills. You cannot claim the employee relief on bills your employer reimbursed separately.
What costs qualify?
| Cost | Qualifies? |
|---|---|
| Broadband | Yes |
| Electricity | Yes |
| Heating (gas, oil, solid fuel) | Yes |
| Home office furniture | No (capital, not running cost) |
| Phone calls | No |
| Coffee or food at home | No |
How to claim
- Log in to Revenue myAccount.
- Go to PAYE Services and select Claim Tax Credits.
- Under Employment, choose Remote Working Relief.
- Enter total annual bills and the number of days worked from home.
- Revenue calculates the deduction and adjusts your Tax Credit Certificate.
You can backdate the claim for up to four years. Keep utility bills for the years you claim in case Revenue requests supporting documents.
Frequently asked questions
What is the 30% remote work tax relief in Ireland?
Revenue allows employees to deduct 30% of the actual costs of broadband, heat and electricity attributable to days worked from home. The deduction reduces your taxable income, so the saving depends on your marginal income tax rate (20% or 40%).
How do I calculate qualifying costs for remote work relief?
Take your total annual broadband, heat and electricity bills. Multiply by the fraction of working days you worked from home. Then take 30% of that figure. For example, if you worked from home 3 days out of 5 for 47 weeks, your home fraction is 0.6 (141/235). On EUR 2,200 total bills, qualifying costs are EUR 1,320 and the deduction is EUR 396.
What is the EUR 3.20 e-worker allowance?
Employers can pay remote workers a tax-free allowance of up to EUR 3.20 per day for each day worked from home. This is in addition to the employee relief and does not affect income tax, USC or PRSI. If your employer pays less than EUR 3.20, or pays nothing, you cannot claim the shortfall through Revenue.
How do I claim remote work tax relief?
Log in to Revenue myAccount, go to PAYE Services and select Claim Tax Credits. Under Employment, choose Remote Working Relief. Enter your total utility bills and the number of days you worked from home. Revenue will calculate the deduction and adjust your Tax Credit Certificate.
Use the Ireland salary calculator to see your take-home pay including any credits you claim.
Sources: Revenue.ie, Tax and Duty Manual Part 05-02-13 (Remote Working Relief). Last updated 2026-11-04.